Question: This is in continuation to my earlier question on Variations in Cournot Competition In lecture we saw the Cournot competition model for two firms

This is in continuation to my earlier question on Variations in Cournot Competition " In lecture we saw the Cournot competition model for two firms with the same cost function. Now. we are going to consider asymmetric cost functions. Assume that demand for a good is given by P = a de (Qd is quantity demanded), and that there are 2 rms competing in quantities. Both have no fixed costs and a constant marginal cost. Firm 1 has a marginal cost C1, and firm 2 has a marginal cost C2. We have that a > C1 > 02." I. Now let's go back to the case where all firms have the same cost function. In class we saw the Cournot competition model for two firms. Now, we are going to get you through the Cournot model with three firms. Assume that demand for a good is given by P = a - MN, and that there are 3 firms competing in quantity with a constant marginal cost 0

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